Bragg chief executive Matevž Mazij has resigned from the company’s board after shareholders voted to eject him at yesterday’s (18 June) AGM.
Shareholders voted 55.67% to 44.33% not to re-elect the Slovenian gaming executive, resulting in him offering to resign from the board in line with Bragg’s bylaws. The news marks a major stumbling block for Mazij. He was appointed to lead the iGaming games developer, aggregator and PAM supplier in August 2023. His appointment came years after founding one of the business precursors and a spell as chair of the board.
The director will continue to serve until either his resignation offer is accepted, a successor is appointed, or 90 days passes. That final administrative deadline lands on 16 September. The official regulatory filing outlining the meeting said the executive had signed a consulting agreement with the firm compensating him €485,000.
The contract contains an additional 150% performance based award. However, the documentation also outlines that if he is terminated without cause, the supplier will be required to pay him an additional year fee. This payment would include the potential bonus.
Market Headwinds and Intense Cost Cutting
The dramatic vote follows rumored shareholder disquiet amid a flatlining share price. The stock value has sunk nearly 60% over the past year down to $1.73. One of the major headwinds on this front was the company announcing in August last year that it was going to miss guidance. This resulted in a steep price drop that the business has never fully recovered from. Another corporate move that is understood to have rankled some investors was the decision by the executive to reduce his personal stake in the business from 17.7% to 13.55%.
The sale brought in C$2,078,000 in proceeds and was blamed on urgent personal financial circumstances. Investors may have also been disappointed by the company decision to end its strategic review in November 2024. Regulatory filings show he received $703,022 in fees from his consulting agreement last year. The supplier has also been engaged in heavy cost cutting over the last year. This process included a 12% reduction in the size of the global workforce announced in January.
This corporate restructuring has been ongoing over the last two years in line with wider industry trends. It remains unknown whether he will stay in post as chief executive or step down entirely. Morten Tønnessen, Bragg COO, has already been highlighted as a potential corporate successor should the position become untenable.
